FINAL FLASHCARDS
Leadership as a process
The use of noncoercive influence to shape the group’s or organization’s goals, motivate behavior toward the achievement of those goals, and help define group or organizational culture.
Leadership as a property
The set of characteristics attributed to individuals who are perceived to be leaders.
People who can influence the behaviors of others without having to rely on force.
Leaders
Distinctions Between Management and Leadership: Creating an agenda
Leadership - Establishing direction and vision for the organization
Management - Planning and budgeting, allocating resources
Distinctions Between Management and Leadership: Developing a human network for achieving the agenda
Leadership - Aligning people through communications and actions that provide direction
Management - Organizing and staffing, structuring and monitoring implementation
Distinctions Between Management and Leadership: Executing plans
Leadership - Motivating and inspiring by satisfying needs
Management - Controlling and problem-solving
Distinctions Between Management and Leadership: Outcomes
Leadership - Produces useful change and new approaches to challenges
Management - Produces predictability and order and attains results
The ability to affect the behavior of others.
Power
The power defined by the organization to be accorded to people occupying a particular position.
Legitimate power
The power to give or withhold rewards, such as salary increases, bonuses, promotions, praise, recognition, and interesting job assignments.
Reward power
The power to force compliance by means of psychological, emotional, or physical threat.
Coercive power
The personal power that accrues to someone based on identification, imitation, loyalty, or charisma.
Referent power
The personal power that accrues to someone based on the information or expertise that they possess.
Expert power
Leadership traits vs. Leadership behavior
Leadership traits assumed that some basic trait or set of traits existed that differentiated leaders from non-leaders. On the other hand, the new hypothesis on leadership behavior was that effective leaders somehow behaved differently from less effective leaders.
Michigan Studies was led by..
Rensis Likert
2 forms of leader behaviour according to the Michigan studies
o Job-centered behavior
— managers who pay close attention to subordinates’ work, explain work procedures, and are keenly interested in performance.
o Employee-centered behavior
— managers who focus on the development of cohesive work groups and employee satisfaction.
Researchers in this did not interpret leader behavior as being one-dimensional as did the Michigan State studies.
Ohio State Studies
2 basic leadership styles according to the Ohio State Studies
o Initiating-structure behavior
— The behavior of leaders who define the leader– subordinate role so that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed
o Consideration behaviour
— The behavior of leaders who show concern for subordinates and attempt to establish a warm, friendly, and supportive climate
It provides a means for evaluating leadership styles and then training managers to move toward an ideal style of behavior.
The Managerial Grid
According to subsequent researches, there is no ___________ or “one best way” model of leadership.
universal
Horizontal and vertical axis of managerial grid
The horizontal axis represents concern for production (similar to
job-centered and initiating-structure behaviors), and the vertical axis represents
concern for people (similar to employee-centered and consideration behaviors).
1.1 manager: (impoverished management)
minimal concern for both production and people
9.1 manager:
(authority-compliance)
highly concerned about production but exhibits little concern for people
1.9 manager: (country club management)
highly concerned about people but exhibits little concern for production
5.5 manager: (middle-of-the-road management)
adequate concern for both people and production
9.9 manager: (team management)
exhibits maximum concern for both people and production.
It is the ideal style of managerial behavior according to the Managerial Grid.
9.9 manager: (team management)
It assumes that appropriate leader behavior varies from one situation to another.
Situational Models of Leader Behavior
Least-Preferred Co-worker (LPC) theory
A theory of leadership that suggests that the appropriate style of leadership varies with situational favorableness.
He developed the Least-Preferred Co-worker (LPC) theory.
Fred Fiedler
Favorableness of the Situation according to the LPC theory
- Leader-member relations – the nature of the relationship between the leader and the work group.
- Task structure – the degree to which the group’s task is defined.
- Position Power – the power vested in the leader’s position.
It is a controversial questionnaire by Fiedler.
LPC measure
It is a direct extension of the expectancy theory of motivation associated with Martin Evans and Robert House.
Path-Goal Theory
The path-goal theory of leadership
It suggests that the primary functions of a leader are
to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment.
4 Leader Behaviors
Directive leader behavior - letting subordinates know what is expected of them, giving guidance and direction, and scheduling work.
Supportive leader behavior - being friendly and approachable, having concern for subordinate welfare, and treating subordinates as equals.
Participative leader behavior - consulting with subordinates, soliciting suggestions, and allowing participation in decision making.
Achievement-oriented leader behavior - setting challenging goals, expecting subordinates to perform at high levels, encouraging and showing confidence in subordinates.
Vroom’s Decision Tree Approach
It predicts what kinds of situations call for different degrees of group participation.
Basic Premises of Vroom’s Decision Tree Approach
The degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation.
No one decision-making process is best for all situations.
2 decision trees
- Decision significance – The degree to which the decision will have an impact on the organization. Subordinates are involved when decision significance is high.
- Decision Timeliness – The degree of time pressure for making a decision in a timely basis; may preclude involving subordinates.
Decision-Making Styles
o Decide — manager makes decision alone and then announces or “sells” it to the group.
o Consult (individually) — manager presents program to group members individually, obtains their suggestions, then makes the decision.
o Consult (group) — manager presents problem to group at a meeting, gets their suggestions, then makes the decision.
o Facilitate — manager presents the problem to the group, defines the problem and its boundaries, and then facilitates group member discussion as they make the decision.
o Delegate — manager allows the group to define for itself the exact nature and parameters of the problem and then develop a solution.
The Leader-Member Exchange (LMX) Approach
Conceived by George Graen and Fred Dansereau, stresses the importance of variable relationships between supervisors and each of their subordinates.
A concept that identifies situations in which leader behaviors are neutralized or replaced by characteristics of the subordinate, the task, and the organization.
Substitutes for Leadership
Characteristics that Substitute for Leadership: Subordinate
ability, experience, need for independence, professional orientation, indifference towards organizational goals
Characteristics that Substitute for Leadership: Task
routineness, the availability of feedback, intrinsic satisfaction
Characteristics that Substitute for Leadership: Organization
formalization, group cohesion, inflexibility, a rigid reward structure
Assumes that charisma is an individual characteristic of the leader.
Charismatic Leadership
A form of interpersonal attraction that inspires support and acceptance.
Charisma
Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking.
Transformational Leadership
The capability to understand the complexities of both the organization and its environment and to lead change in the organization to achieve and maintain a superior alignment between the organization and its environment.
Strategic Leadership
Perhaps now more than ever, high standards of this leadership style is being held up as a prerequisite for effective leadership.
Ethical Leadership
The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes.
Political Behavior
In this leadership style, culture is used as a broad concept to encompass both international differences and diversity-based differences within one culture.
Cross-Cultural Leadership
Common Political Behaviors
Inducement - offering to give something to someone else in return for that person’s support.
Persuasion - persuading others to support a goal on grounds that are objective and logical as well as subjective and personal.
Providing support for another person’s position that obliges that person to return the favor at a future date.
Creation of an obligation
Using force to get one’s way.
Coercion
Making a direct and intentional effort to enhance one’s image in the eyes of others.
Impression management
The process of transmitting information from one person to another.
Communication
The process of sending a message in such a way that the message received is as close in meaning as possible to the message intended.
Effective communication
Raw figures and facts reflecting a single aspect of reality.
Data
Data presented in a way or form that has meaning.
Information
Characteristics of Useful Information
Accurate – Provides a valid and reliable reflection of reality
Timely – Available in time for appropriate managerial action
Complete – Provides the manager with all the information that he or she needs
Relevant – Information that is useful to managers in their particular circumstances for their particular needs
Steps in the Communication Process
- Deciding to transmit a fact, idea, opinion, or other information to the receiver.
- Encoding the meaning into a form appropriate to the situation.
- Transmitting through the appropriate
channel or medium. - Decoding the message back into
a form that has meaning to the
receiver.
It is anything disrupting the communication process.
Noise
2 forms of Interpersonal Communication
- Oral communication - Face-to-face conversation, group discussions, telephone calls, and other circumstances in which the spoken word is used to transmit meaning
- Written communication - Memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning.
The pattern through which the members of a group communicate.
Communication network
Types of Communication Networks
Wheel - most centralized network
because one person receives and disseminates all information.
Y pattern - slightly
less centralized—two people are close to the center.
Chain - two people (the ones at each end) interact with only one other person.
Circle - circle pattern
All channel - most decentralized, allows a free flow of information among all group members.
2 forms of Organizational Communication
- Vertical communication - Communication that flows up and down the organization, usually along formal reporting lines.
- Horizontal communication - Communication that flows laterally within the organization; involves colleagues and peers at the same level.
Upward vs. Downward communication
Upward communication consists of messages from subordinates to superiors. While, downward communication occurs when information flows down the hierarchy from superiors to subordinates.
The resources used by an organization to manage information that it needs to carry out its mission.
Information technology (IT)
In IT, this have made it increasingly easy for managers to use many different kinds of information systems.
Information Systems Advances
An application of information processing for basic day-to-day business transactions.
Transaction-processing systems (TPSs)
An information system that supports an organization’s managers by providing daily reports, schedules, plans, and budgets.
Management information systems (MISs)
An interactive system that locates and presents information needed to support the decision-making process.
Decision support systems (DSSs)
In this, people work at home on their computers and communicate with colleagues and co-workers using electronic media.
Telecommuting
A quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers.
Executive support system (ESS)
The construction of computer systems, both hardware and software, to imitate human behavior— that is, to perform physical tasks, use thought processes, and learn.
Artificial intelligence (AI)
A communication network similar to the Internet but operating within the boundaries of a single organization.
Intranets
A communication network that allows selected outsiders limited access to an organization’s internal information system, or intranet.
Extranets
An informal communication network among people in an organization.
The Grapevine
2 most common grapevine chains
gossip chain - one person
communicates messages to many others
cluster chain - many people pass messages to
a few others.
It may cross different levels and different departments or work units, and it may or may not have anything to do with official organizational business.
Informal Communication in Organizations
An approach to communication that involves the manager literally wandering around and having spontaneous conversations with others.
Management by Wandering Around
Any communication exchange that does not use words or uses words to carry more meaning than the strict definition of the words themselves.
Nonverbal Communication
3 kinds of nonverbal communication
Images—the kinds of words people elect to use to give emphasis and effect to what they say.
Settings—symbols of power and influence how people choose to communicate in organizations.
Body language—body
and hand movement, pauses in speech, and
mode of dress.
Individual Barriers to Effective Communication
Conflicting or inconsistent signals
Credibility about the subject
Reluctance to communicate
Poor listening skills
Predispositions about the subject
Organizational Barriers to Effective Communication
Semantics
Status or power differences
Different perceptions
Noise
Overload
Language differences
The regulation of organizational activities in such a way as to facilitate goal attainment.
Control
The Purpose of Control
Control provides an organization with ways to adapt to environmental change, to limit the accumulation of error, to cope with organizational complexity, and to minimize costs.
Areas of Control
Control of Physical Resources - includes inventory management, quality control, and equipment control
Control of human resources - includes selection and placement, training and development, performance appraisal, and compensation.
Control of information resources - includes sales and marketing forecasting, environmental analysis, public relations, production scheduling, and economic forecasting
Control of financial resources - is the most important area, because financial resources are related to the control of all the other resources in an organization
Levels of Control
- Operations Control – Focuses on the processes that the organization uses to transform resources into products or services
- Financial Control – Concerned with the organization’s financial resources
- Structural Control – Concerned with how the elements of the organization’s structure are serving their intended purpose
- Strategic Control – Focuses on how effectively the organization’s strategies are succeeding in helping the organization meet its goals.
A position in organizations that helps line managers with their control activities.
Controller
Steps in the Control Process: Establish Standards
Control standards..
1. should be expressed in measurable terms.
2. should be consistent with organizational goals.
3. should be identifiable indicators of performance.
Steps in the Control Process: Measure Performance
Performance measurement is an ongoing process.
Performance measures must be valid indicators (e.g., sales, costs, units produced) of performance.
Steps in the Control Process: Compare Performance Against Standards
Define what is a permissible deviation from the performance standard.
Utilize the appropriate timetable for measurement.
Steps in the Control Process: Determine the Need for Corrective Action
Maintain the status quo (do nothing).
Correct the deviation to bring operations into compliance with the standard.
Change the standard if it was set too high or too low
It focuses on the processes the organization use to transform resources into products or services
Operations Control
Forms of Operations Control
Preliminary control
(Input) - focus is on inputs to the organizationalsystem.
Screening control
(Transformation) - focus is on how inputs are being transformed into outputs.
Postaction control (Outputs) - focus is on outputs from the organizational system.
It is concerned with the organization’s financial resources.
Financial control
A plan expressed in numerical terms.
Budget
Types of Budget: Financial Budget
Cash flow or cash budget - All sources of cash income and cashexpenditures
Capital expenditures budget - Costs of major assets such as a new plant, machinery, or land
Balance sheet budget - Forecast of the organization’s assets and liabilities
Types of Budget: Operating Budget
Sales or revenue budget - Income that the organization expects to receive from normal operations
Expense budget - Anticipated expenses for the organization
during the coming time period
Profit budget - Anticipated differences between sales or
revenues and expenses
Types of Budget: Nonmonetary Budget
Labor budget - Hours of direct labor available for use
Space budget - Square feet or meters of space available for various functions
Strengths of Budgeting
Budgets facilitate effective operational controls.
Budgets facilitate communication between departments.
Budgets established records of organizational performance, which can enhance planning.
Weaknesses of Budgeting
Budgets can hamper operations if applied too rigidly
Budgets can be time consuming to develop
Budgets can limit innovation and change
A profile of some aspect of an organization’s financial circumstances
Financial Statement
List of assets and liabilities of an organization at a specific point in time.
Balance Sheet
A summary of financial performance over a period of time, usually one year.
Income Statement
The calculation of one or more financial ratios to assess some aspect of the organization’s financial health.
Ratio Analysis
An independent appraisal of an organization’s accounting, financial, and operational systems.
Audits
A form of organizational control characterized by formal and mechanistic structural arrangements.
Bureaucratic Control
An approach to organizational control based on informal and organic structural arrangements.
Decentralized Control
Control aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals.
Strategic Control
Focuses on whether to manage the global organization from a centralized or decentralized perspective.
International Strategic Control
Characteristics of Effective Control
Integration with Planning - the more control is linked to planning, the more effective the control system.
Flexibility - the control system must be flexible enough to accommodate change.
Accuracy - Inaccurate information results in bad decision making and inappropriate managerial actions
Timeliness - A control system should provide information as often as necessary.
Objectivity - A control system must be free from bias and distortion
Resistance to Control
Over-control - Trying to control too many details.
Inappropriate Focus - The control system may be too narrow or it may focus too much on quantifiable variables and leave no room for analysis or interpretation.
Rewards for Inefficiency - Rewarding operational inefficiency can lead employees to behave in ways that are not in the best interests of the organization.
Too much accountability
- Efficient controls are resisted by poorly performing employees
